ACCOUNTING AND CHECKING OUT - Hotel/Motel Operations: An Overview

FRONT-OFFICE

OPERATIONS:

98 Chapter 6 Front-Office Operations: Accounting and Checking Out

' ' o o o ' o ' o o o ' o ' 0 o ' ' o ' o o o ' o I 0 o ' ' o ' ' o o ' o ' o o o ' o ' • o o ' o ' o 0 o ' o ' o o o ' o ' o o ' ' o ' o o o ' o o o o ' ' o ' ' o o ' o ' o o o ' o ' o o o ' o ' o o o ' o ' o o o ' o ' o o ' ' o ' o o o ' o o o o ' ' o ' ' o o ' o ' o o o ' o ' • o o ' o ' o o o ' o ' o o o ' o ' o o o ' o ' o o o ' o o o o ' ' o ' • o o ' o ' o o o ' o ' • o o ' o ' 0 o • ' o ' o o o ' o ' 0 o o ' '

ACCOUNT I NG

Guests pay for the hospitality services that they receive at a lodging establishment when they check out. The management of collecting money from guests is vital. Payments from guests are collected by front-desk clerks, or specific cashier positions may be established.

Any personnel involved in collecting payments from guests must have been trained to be discreet and amiable. The accounting department, which is also called the "back office," works closely with the front-desk personnel. This division is responsible for billings and accounts payable, financial statements, payroll, profit and loss statements, and yield management statistics.

DETERMINING THE BILL

How is the total bill for a guest determined? Basically, there is a set room rate (rack rate) that was established when the guest checked in.

This is quoted on the registration card. To this a sales tax and, in many localities, a higher lodging tax are added. Lodging taxes can add con- siderably to a person's bill. In addition to standard state and local sales taxes, some areas add a flat rate "bed tax" on each night's lodging. In some cities these add up to 17 percent of the total room cost. These funds may be used to support tourism promotion or building projects.

For example, Houston's high lodging taxes are used to finance the construction of the Astrodome. Figure 6-1 shows combined bed, state, and local taxes by U.S. regions.

In addition, the guest has most likely incurred charges for using the telephone. The guest may have charged meals and drinks in the restaurant and bar, or there may be a charge for food that room serv-

ice delivered to the room. In a large hotel the guest might have charged to the room flowers from the florist or toothpaste from the gift shop. All of these additional charges must be tallied for the guest at checkout time. Long-term guests at extended-stay properties may pay weekly, or their bills are invoiced directly to their company. This may involve a purchase order from the company.

Folios. A folio is kept for each guest. This is a running tabulation of the charges a guest has incurred from all the departments of the hotel. The folio keeps accounts that are due and those that are paid.

Computerized folio systems can show folios on the screen and print them out at the touch of a button.

The sample computer folio in Figure 6-2 shows that upon arrival the guest paid $46.00 for her room and $5.06 tax. The next day she

Chapter 6 Front-Office Operations: Accounting and Checking Out 99

...•.......•.......•.......•...•...•.......•...•.......•...•...

Averaged bed, state, an d local taxes in state markets

Northeast Percent South Central Percent

Connecticut 12.00 ^Arkansas 10.63

Maine 7.00 ^Kentucky 11.83

Massachusetts 12.45 ^Louisiana 11.02

New Hampshire 8.00 Mississippi 9.94

New York 14.30 ^Oklahoma 10.39

Rhode Island 12.00 ^Texas 15.00

Vermont 9.00 North Central

Mid-Atlantic ^Iowa 12.00

Delaware 8.00 ^Kanasas 11.15

Maryland 12.50 ^Missouri 13.29

New Jersey 9.44 ^Nebraska 14.84

Pennsylvania 12.33 North Dakota 9.00

(District of Columbia) 15.60 South Dakota 9.00

Great Lakes States Northwest

Illinois 14.90 ^Idaho 11.00

Indiana 11.00 ^Montana 4.00

Michigan 15.00 ^Oregon 9.00

Minnesota 12.25 Washington 12.05

Ohio 13.58 ^Wyoming 8.00

Wisconsin 11.76 Southwest

Southeast ^Arizona 10.63

Alabama 10.00 California 12.00

Florida 11.50 ^Colorado 11.80

Georgia 14.00 ^Nevada 9.00

North Carolina 12.00 New Mexico 10.62

South Carolina 12.00 ^Utah 10.60

Tennessee 12.91 ^Hawaii 10.16

Virginia 11.50 ^Alaska 8.00

West Virginia 9.00

Occupancy taxes vary in local jurisdictions. Percentages reflect averaged taxes for some states with diverse markets.

FIGURE 6-1

Combined tax amounts vary in local jurisdictions. Percentages reflect averaged taxes for some states with diverse markets.

Source: American Hotel Foundation

paid another $51.06 for the lodging but wound up with a balance of only $47.93 when she made a long-distance call which cost $3.13.

The next morning before checking out she made two more calls which left her owing the hotel $9.48.

100 Chapter 6 Front-Office Operations: Accounting and Checking Out

' ' o o o ' o ' o o o ' o ' o o ' ' o ' o o o ' o I I o ' ' o ' ' o o ' o ' o o o ' o ' • o o ' o ' o 0 o ' o ' o o o ' o ' o o ' ' o ' o o o ' o o o o ' ' o ' ' o o ' o ' o o o ' o ' o o o ' o ' o o o ' o ' o o o ' o ' o o ' ' o ' o o o ' o o o o ' ' o ' ' o o ' o ' o o o ' o ' • o o ' o ' o o o ' o ' o o o ' o ' o o o ' o ' o o o ' o o o o ' ' o ' • o o ' o ' o o o ' o ' • o o ' o ' 0 o • ' o ' o o o ' o ' 0 o o ' '

• •

•

ROOM M: 1207/ 5

Name SPENCER, Deanna

Regist Num . 27584 Days 2

Type of Pay CASH Dl! script ion

CLERK M DATE 2653 SEP 03 --

9 SEP 03 --

9 SEP 03 9503 SEP 04 9403 SEP 04 --

9 SEP 04 --

9 SEP 04 -- 8:503 SEP 05 -- 8403 SEP 05 -

DEPARTMENT CASH PAYMENTS ROOM

TAX

CASH PAYMENT LONG DISTANCE

ROOM TAX

LONG Dl STANCE LONG DISTANCE

Rate $ 46. 00 Postings 9

AMOUNT BALANCE

$51.06 $51.06

$46.00 $ 5.06

$ :5.06 $ 0.00

$51 . 06 $51.06

$ 3.13 $47.93

$46.00 $ I . 93

$ 5.06 $ 3 . 13

$ 0 .62 $ 3 . 75

$ 5 . 73 $ 9.48

THIS Is NOT a 8 ILL.

Advance copy for your Review

ClK 6 Fol I o I

DESCRIPTiet-.1 UPON ARRIVAL

RM M1207 RATE 46 2ND NIGHT PAYMENT :501-:55:5-7645

RM Ml 207 RATE 46 501-555-1212

501-5:55-7645

• •

•

FIGURE 6-2

Computer folio

Handwritten folios are still occasionally used in smaller hotels.

Understanding them makes computer usage simpler. Handwritten (or manual) folios, in multiple copies, are kept in a bucket (usually a metal oblong portable box) at the front desk near the cashier's pen.

A manual folio might have seven columns for the seven days of the week and, along the side, a list of the departments most often used by guests. Charges are posted by day across from the appropriate department. Each day each department's charges are inserted. Balances from day to day are totaled by the night auditor. A sample form for a handwritten folio is shown in Figure 6-3.

Vouchers. In noncomputerized properties, when the hotel telephone operator or the restaurant cashier receives a charge to the guest, that person sends a voucher to the front desk which shows the amount of the charge. Vouchers are forwarded to the front desk as quickly as possible after charges are incurred, as guests can check out at any time. The voucher is time stamped upon receipt at the front desk. The clerk then posts the amount on the guest's folio and ini- tials the voucher to show that it has been posted. The folio is then

Chapter 6 Front-Office Operations: Accounting and Checking Out 101

...•.......•.......•.......•...•...•.......•...•.......•...•...

Room No. No. Persons Rate Arrival Departure

1J){, 2. $12. 6151-- 6111-- ^No. 51115

NAME: ttl\y. QM.o( tt~v-s. JOJ..11 tt~cG.v-1). -tt. ^1f'be

Wise Hotel

Sl~~~ T!.IBE; Sd->1 tt~cG.v-1).1:"-

Old Folio No. 51112.

Next Folio No. 5'1114

DATE 615 616 611

Balance Forward

Room $11..00 $11..00

Tax 5.& 5.06

Telephone (LOCAL) f(Jg 4.go Telephone ( L.D.) 17.AO

Laundry

Food 60.64 2.3.n 1g.44

Beverages 11..54

Cash Disbursements Transfer

TOTAL ^11tjg 13S.7..2.. ^1S.⁴⁴

Cash Receipts 3m4

Transfer Allowances

BALANCE

FIGURE 6-3

Handwritten folio

returned to the bucket, and the vouchers are kept filed by date and department.

With computerized systems, posting is done at the point of sale (POS). For example, a meal is charged and the cashier in the restaurant keys in the total at his or her terminal. This total is instantaneously included on the folio when it is called up on any terminal ⁱⁿthe hotel.

Credits. Credits also are recorded on the folio. Credits might occur for several reasons. A guest might pay a portion of the bill. The cashier

102 Chapter 6 Front-Office Operations: Accounting and Checking Out

then credits the guests' folio with a payment. If one guest pays for another, both folios need to be updated. For one a charge would be added; for the other a credit would be entered.

There might also be an adjustment, rebate, or allowance added to the guest's bill. For example, a customer might be given credit for a telephone call that was incorrectly charged to that room. Each facil- ity has different policies concerning this, but usually the manager must approve such adjustments. When approved, a rebate voucher is prepared and the amount is posted as a credit to the guest's folio. A rebate journal is also kept so that the night auditor can justify and cross-check these folio entries.

COLLECTING PAYMENT

A hotel must establish very early that a guest will be able to pay the bill. The lodging industry is a service industry, and services already rendered cannot be repossessed. Many hotels, particularly those along interstate highways in highly transient locations, require that a person pay for the room in advance. To ensure payment of all additional charges, the motel might charge a deposit for the room key.

When the guest returns the key to collect the deposit, the hotel checks to see if additional charges such as long-distance telephone calls have been entered on the folio. A common last-minute addition to a bill is charges for items consumed from in-room minibars.

Most often this involves an employee making a physical check of its inventory.

METHODS OF PAYMENT

Guests may use cash, checks, charges, credit cards, or vouchers in paying their hotel bills. Each of these methods is discussed in the following sections. Acceptable methods of payment should be clearly stated to the guest at check-in. Often this is printed on the rooming slip or key folder. If a property doesn't take personal checks, or specific brand credit cards, guests deserve to know this before incurring charges.

Cash. Some guests present cash and should be given a receipt. The cashier should post the transaction immediately on the folio. The cashier posts these transactions on the front-office cash sheet, which records in chronological order all the cash received and all that has been disbursed from that office.

Chapter 6 Front-Office Operations: Accounting and Checking Out 103

...•...•...•...•...•...•...•...•...•...•...

The cashier has begun the day with a bank, which is a set amount of cash in the register. During the day checks may be cashed and these must tally with the amount of cash left in the bank. The cash sheet must be justified at the end of the day with the paid out vouchers. Paid outs

might be for COD deliveries or tips. If, for example, a guest signs for room service and adds a tip for the bellhop, then the bellhop can go to the cashier and immediately receive the tip amount. A paid out voucher would be written up. If the hotel has a computerized system, the cashier's terminal can access and print out guest folios. A computer can also keep track of paid outs and reconcile them with the bank amount.

Particularly in big cities, large hotels develop policies concerning cashiers accepting foreign currency. Foreign currency must be con- verted into U.S. dollars, so an arrangement with a bank or foreign money broker must be established. Even for the more stable curren- cies, like German marks or French francs, rates fluctuate daily, so cashiers must communicate with the accepting banks as to the cur- rent rate of exchange.

Checks. House policies vary, but cashiers must take a few standard precautions for accepting checks. The cashier must (1) be sure the check is not postdatedi (2) be sure the amount is COITeCti and (3) be sure the signature is signed in his or her presence. On the back of the check the cashier should note some other means of identification, usually a driver's license and a major credit card number. Most hotels do not accept third-party checks.

Most establishments will cash recognized money orders and traveler's checks. Both must be countersigned in the presence of the cashier, who must make sure that the signatures match. Identification such as a driver's license or a passport is usually requested.

Charges. A line of credit can be established either for the guest or for the guest's company. In these instances the hotel would send a bill to the person or business at a later date. A credit account would be care- fully checked, most likely with the guest's personal or company bank.

There are varying accounts or lines of credit that a person can charge. This could be as low as $50, but at some hotels a $500 line of credit would mean only two night's lodging. Hotel policies on "credit line"

accounts vary, with the manager having the final approval or disap- proval. Direct billing is most often used at extended-stay properties for their long-term guests.

Credit Cards. Upon registering, hotels ask the guest how the bill will be paid. If it is a credit card, the number is checked against the

104 Chapter 6 Front-Office Operations: Accounting and Checking Out

credit card company information which shows expired and stolen cards and bad risk holders. In many instances, when guests make reservations they guarantee it by giving their credit card number. The guest may prefer to pay in cash upon checkout, but if not the hotel by that time has had the opportunity to establish the guest's credit- worthiness.

Most places that accept credit cards are connected electronically with "swipe" equipment connected to the issuing bank. This auto-

matically authorizes that a card is valid, that the account is not in ar- rears, and that the credit limit is available. An authorization number is sometimes given. The credit limit or floor limit imposed on the individual's account is very important with today's high room rates. For example, a guest may have a $3,000 credit limit. When the hotel checks the authorization service, it learns that $2,500 has already been used. If the hotel allows the guest to charge over $500, the credit card company might not accept the charges.

Different establishments honor different credit cards. Bank credit cards are the most common, usually Visa or Master Card. There are also travel and entertainment cards such as American Express and Diner's Club. With bank cards, the owed funds are quickly deposited in the hotel's account. Entertainment cards process payments period- ically. In all cases, the hotel pays a commission to the credit companies on the charges made. This varies between 1 and 6 percent on the charged transaction. The hotel is billed the amount owed to the credit card company on a regular basis. In accepting a credit card, the cashier must be sure the card has been checked against the company's poor risk list and credit limit is available. The cashier should compare signatures on the card itself with the charge slip. The guest should be given a copy of the charge slip and folio showing a zero balance.

Prepaid Vouchers. A package tour might involve airfare to Ja- maica, airport transfers, and three nights' lodging at a resort. In this case, the tour operator books and pays for the room nights for the traveler. The traveler presents vouchers that were given to him or her by the tour operator to the front desk. These indicate that the room nights have been paid. This also can occur with conference at- tendees. Vouchers are also used in the case of gift certificates or fre- quent-user awards.

THE CITY LEDGER

When guests check out, their folio is closed. In most cases the bill is paid in full, leaving a zero balance. Even if there is a balance when the

Chapter 6 Front-Office Operations: Accounting and Checking Out 105

...•...•...•...•...•...•...•...•...•...•...

FIGURE 6-4

Different establishments honor different credit cards.

guest leaves, the folio is closed, and the amount due is transferred to what is called the city ledger. The city ledger shows all of the money owed to the hotel/motel.

Credit card billings are posted on the city ledger, showing that the credit card company has not paid that bill yet. Some companies and organizations have direct billing on a monthly basis. These bills are also included on the city ledger. Individuals or organizations that hold meetings at the property might also be direct billed. Skippers or walk-outs (guests who have left without paying their room charge), late charges (long-distance phone charges which were not picked up on the folio or computer prior to when the guest checked out), disputed bills, and bad checks all are included on the city ledger.

106 ^{Chapter 6} Front-Office Operations: Accounting and Checking Out

FIGURE 6-5

The night auditor gathers important statistics for management and also for the sales department.

THE N IGHT AUDITOR

The night auditor or auditors begin work after most of the hotel's departments have closed for the day. Auditors usually work from 11 ^P.M.

to 7 ^A^.M^.An auditor finalizes the accounting for the hotel for the day and also compiles valuable research statistics for the property. The auditor position is generally not entry level, and often a cashier or room clerk is promoted to this slot.

The auditor pulls each individual guest folio up on the computer or manually retrieves the folios from the bucket, and inserts the room rate and taxes for that night. The room rate is verified. Credit limits are reviewed to be sure that the guest is not nearing his or her limit.

The housekeeping department records are reviewed to ensure that there are no sleepers.

Chapter 6 Front-Office Operations: Accounting and Checking Out 107

...•...•...•...•...•...•...•...•...•...•...

All point of sale debits and credits for the day are totaled and this is compared with the guests' folios to be sure all charges have been correctly entered. Charges for meeting rooms are posted. The auditor tallies each department's fiscal balance and confirms cash sheets and banks, recording overages and underages. Most importantly, the auditor updates the city ledger.

The auditor gathers important statistics for management and the sales department. The statistics answer the following questions management must know to run an efficient operation: Did all of those with reservations arrive? How many walk-ins (people with no reservations who appear at a property desiring a room) were there? What was the number of no-shows (people with reservations who don't come to the hotel)? Were there any skippers? What was the percent- age of overstays and understays (guests who do not stay at the h otel for the entire time originally indicated)? Were the rates charged over or under the rack rate?

This information, along with variables such as the weather, time of year, airline schedules, and seasonal events, allows management to estimate the occupancy rate and to make projections. By the time the general manager arrives the next morning, the auditor has prepared a full report on the revenue generated the prior day and the statistical information needed to figure productivity and to make long-range plans for effective yield management.

The computer printout shown in Figure 6-6 is a departmental report showing debits and credits for the different hotel accounts and departments. The income from restaurants and bars is shown, and charges for long-distance calls and even the parking fees are shown.

The night auditor compares these credits and debits with cash received, vouchers, and charges to folios.

Property management systems (PMSs) are computer programs that perform much of the tedious night auditor's accounting duties. Though the computer inserts the figures, a detail-oriented person

must organize the data.

Dalam dokumen Hotel/Motel Operations: An Overview - 2nd edition (Halaman 98-108)